CARRIER GLOBAL CORP (CARR) Stock Fundamental Analysis
NYSE:CARR - New York Stock Exchange, Inc. - US14448C1045 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to CARR. CARR was compared to 41 industry peers in the Building Products industry. While CARR is still in line with the averages on profitability rating, there are concerns on its financial health. CARR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CARR was profitable.
CARR had a positive operating cash flow in the past year.
Each year in the past 5 years CARR has been profitable.
CARR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 16.51%, CARR belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
CARR has a better Return On Equity (43.41%) than 92.68% of its industry peers.
CARR has a worse Return On Invested Capital (6.34%) than 68.29% of its industry peers.
CARR had an Average Return On Invested Capital over the past 3 years of 8.06%. This is below the industry average of 12.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.51% | ||
| ROE | 43.41% | ||
| ROIC | 6.34% |
ROA(3y)10.88%
ROA(5y)9.38%
ROE(3y)33.63%
ROE(5y)31.44%
ROIC(3y)8.06%
ROIC(5y)7.66%
1.3 Margins
With an excellent Profit Margin value of 21.72%, CARR belongs to the best of the industry, outperforming 97.56% of the companies in the same industry.
CARR's Profit Margin has improved in the last couple of years.
CARR has a Operating Margin of 10.59%. This is comparable to the rest of the industry: CARR outperforms 43.90% of its industry peers.
In the last couple of years the Operating Margin of CARR has declined.
The Gross Margin of CARR (26.96%) is worse than 65.85% of its industry peers.
In the last couple of years the Gross Margin of CARR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.59% | ||
| PM (TTM) | 21.72% | ||
| GM | 26.96% |
OM growth 3Y-5.06%
OM growth 5Y-4.9%
PM growth 3Y45.61%
PM growth 5Y16.99%
GM growth 3Y-2.78%
GM growth 5Y-1.79%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CARR is destroying value.
The number of shares outstanding for CARR has been increased compared to 1 year ago.
Compared to 5 years ago, CARR has more shares outstanding
CARR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.25 indicates that CARR is not in any danger for bankruptcy at the moment.
CARR has a Altman-Z score (3.25) which is in line with its industry peers.
CARR has a debt to FCF ratio of 13.67. This is a negative value and a sign of low solvency as CARR would need 13.67 years to pay back of all of its debts.
The Debt to FCF ratio of CARR (13.67) is worse than 70.73% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that CARR is somewhat dependend on debt financing.
CARR has a Debt to Equity ratio of 0.80. This is in the lower half of the industry: CARR underperforms 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 13.67 | ||
| Altman-Z | 3.25 |
ROIC/WACC0.66
WACC9.65%
2.3 Liquidity
CARR has a Current Ratio of 1.20. This is a normal value and indicates that CARR is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CARR (1.20) is worse than 85.37% of its industry peers.
CARR has a Quick Ratio of 1.20. This is a bad value and indicates that CARR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CARR (0.83) is worse than 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
CARR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
The Earnings Per Share has been growing by 20.27% on average over the past years. This is a very strong growth
The Revenue has grown by 20.42% in the past year. This is a very strong growth!
CARR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.86% yearly.
EPS 1Y (TTM)0%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%4.84%
Revenue 1Y (TTM)20.42%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-15.59%
3.2 Future
CARR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.34% yearly.
CARR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.46% yearly.
EPS Next Y10.9%
EPS Next 2Y12.17%
EPS Next 3Y11.95%
EPS Next 5Y10.34%
Revenue Next Year0.54%
Revenue Next 2Y3%
Revenue Next 3Y3.91%
Revenue Next 5Y5.46%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CARR is valuated quite expensively with a Price/Earnings ratio of 26.65.
Based on the Price/Earnings ratio, CARR is valued a bit more expensive than the industry average as 60.98% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of CARR to the average of the S&P500 Index (27.30), we can say CARR is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.41, the valuation of CARR can be described as rather expensive.
CARR's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.06. CARR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.65 | ||
| Fwd PE | 21.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CARR is valued a bit more expensive than the industry average as 60.98% of the companies are valued more cheaply.
73.17% of the companies in the same industry are cheaper than CARR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 79.05 | ||
| EV/EBITDA | 17.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CARR does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.45
PEG (5Y)1.31
EPS Next 2Y12.17%
EPS Next 3Y11.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.17%, CARR has a reasonable but not impressive dividend return.
CARR's Dividend Yield is a higher than the industry average which is at 1.12.
Compared to an average S&P500 Dividend Yield of 2.34, CARR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
CARR has been paying a dividend for over 5 years, so it has already some track record.
CARR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
11.79% of the earnings are spent on dividend by CARR. This is a low number and sustainable payout ratio.
DP11.79%
EPS Next 2Y12.17%
EPS Next 3Y11.95%
75.43
+0.05 (+0.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners85.57%
Inst Owner Change0.05%
Ins Owners5.99%
Ins Owner Change13.93%
Market Cap64.67B
Analysts79.35
Price Target84.13 (11.53%)
Short Float %1.78%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend0.78
Dividend Growth(5Y)N/A
DP11.79%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.56%
Min EPS beat(2)6.11%
Max EPS beat(2)9.02%
EPS beat(4)3
Avg EPS beat(4)1.96%
Min EPS beat(4)-8.31%
Max EPS beat(4)9.02%
EPS beat(8)7
Avg EPS beat(8)4.99%
EPS beat(12)10
Avg EPS beat(12)4.93%
EPS beat(16)14
Avg EPS beat(16)6.5%
Revenue beat(2)0
Avg Revenue beat(2)-2.82%
Min Revenue beat(2)-4.33%
Max Revenue beat(2)-1.31%
Revenue beat(4)0
Avg Revenue beat(4)-5.22%
Min Revenue beat(4)-8.93%
Max Revenue beat(4)-1.31%
Revenue beat(8)1
Avg Revenue beat(8)-4.04%
Revenue beat(12)2
Avg Revenue beat(12)-2.84%
Revenue beat(16)5
Avg Revenue beat(16)-1.48%
PT rev (1m)0%
PT rev (3m)2.67%
EPS NQ rev (1m)0.61%
EPS NQ rev (3m)0.63%
EPS NY rev (1m)0.55%
EPS NY rev (3m)1.4%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)1.39%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.65 | ||
| Fwd PE | 21.41 | ||
| P/S | 2.33 | ||
| P/FCF | 79.05 | ||
| P/OCF | 49.9 | ||
| P/B | 4.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.84 |
EPS(TTM)2.83
EY3.75%
EPS(NY)3.52
Fwd EY4.67%
FCF(TTM)0.95
FCFY1.26%
OCF(TTM)1.51
OCFY2%
SpS32.32
BVpS16.17
TBVpS-8.84
PEG (NY)2.45
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.51% | ||
| ROE | 43.41% | ||
| ROCE | 9.96% | ||
| ROIC | 6.34% | ||
| ROICexc | 6.73% | ||
| ROICexgc | 29.62% | ||
| OM | 10.59% | ||
| PM (TTM) | 21.72% | ||
| GM | 26.96% | ||
| FCFM | 2.95% |
ROA(3y)10.88%
ROA(5y)9.38%
ROE(3y)33.63%
ROE(5y)31.44%
ROIC(3y)8.06%
ROIC(5y)7.66%
ROICexc(3y)10.45%
ROICexc(5y)9.61%
ROICexgc(3y)34.91%
ROICexgc(5y)29.9%
ROCE(3y)12.67%
ROCE(5y)12.04%
ROICexcg growth 3Y11.52%
ROICexcg growth 5Y4.64%
ROICexc growth 3Y-15.42%
ROICexc growth 5Y-8.97%
OM growth 3Y-5.06%
OM growth 5Y-4.9%
PM growth 3Y45.61%
PM growth 5Y16.99%
GM growth 3Y-2.78%
GM growth 5Y-1.79%
F-Score6
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 13.67 | ||
| Debt/EBITDA | 2.67 | ||
| Cap/Depr | 39.15% | ||
| Cap/Sales | 1.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 31.2% | ||
| Profit Quality | 13.6% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 3.25 |
F-Score6
WACC9.65%
ROIC/WACC0.66
Cap/Depr(3y)74.81%
Cap/Depr(5y)83.81%
Cap/Sales(3y)2.12%
Cap/Sales(5y)1.96%
Profit Quality(3y)66.45%
Profit Quality(5y)76.55%
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%4.84%
EPS Next Y10.9%
EPS Next 2Y12.17%
EPS Next 3Y11.95%
EPS Next 5Y10.34%
Revenue 1Y (TTM)20.42%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-15.59%
Revenue Next Year0.54%
Revenue Next 2Y3%
Revenue Next 3Y3.91%
Revenue Next 5Y5.46%
EBIT growth 1Y33.44%
EBIT growth 3Y-2.27%
EBIT growth 5Y-1.23%
EBIT Next Year35.36%
EBIT Next 3Y16.27%
EBIT Next 5Y8.53%
FCF growth 1Y-51.83%
FCF growth 3Y-42.28%
FCF growth 5Y-27.03%
OCF growth 1Y-37.24%
OCF growth 3Y-26.64%
OCF growth 5Y-15.1%